After Hours with Maria Bartaromo - CNBC August 5,
2002 9:00 p.m. - 10:00 p.m.
Maria: We're back with JP Morgan Chase CEO & Chairman,
Bill Harrison. Bill, we've been talking about the
potential liabilities to JP Morgan regarding Enron. The
bond market has seemed to have made up its mind. JP
Morgan bonds are trading as if your company was a single
"A" rated company when, in fact, you're a double
"A" rated. Now, is it a dead give away when your bonds
are trading like you're about to get down graded by the
ratings agencies?
William Harrison: I don't think so. I can't speak for
the rating agencies. But, the fundamentals of the
company in terms of capital, liquidity and our strategic potential in terms of earnings uh, are very clear. So,
we hope that we'll be able to maintain our ability
ratings and I think we will.
Maria: There have recently been worries about your
derivatives portfolio. How large is your credit
exposure in that portfolio? How much could you lose
potentially?
William Harrison: Well, we have a $50 billion dollar
net derivatives, uh, position. Uh, the credit quality
of that, uh, asset class is very high. About 85% of
that $50 billion dollars is..is..cre..is.. extended..credit
risk extended..to uh, investment grade companies. Uh,
so, the credit statistics are very good. We're not
worried about the credit risk of that portfolio.
Maria: Mm, hmm. |
